Financial literacy the key to ‘financial wellness’

There are clear links between financial literacy and perceived levels of "financial wellness", according to new data released by the Workplace Super Specialists Association (WSSA).

The WSSA today released the results of its Financial Wellness index developed in conjunction with CoreData, with WSSA president, Terry Rhodes, saying the survey demonstrated the clear iinks between employee financial literacy and perceived levels of financial wellness, and financial stress and productivity.

"We know employees who lack financial wellness tend to be more stressed, as observed by more than three in five employers (63.3 percent)," he said.

"Further, a significant number of employers also noted presenteeism (43.3 per cent), low morale (30 per cent), and absenteeism (16.7 per cent) as other consequences of poor financial wellness. Rhodes said the data suggested that financial wellness programs could have a clear benefit for all involved.

The survey showed that despite the costs of poor financial wellness, only 15.2 per cent of the businesses surveyed had implemented a financial wellness program, yet three in five of those that had implemented such programs had seen an increase in the overall financial wellness of their employees over the last six months.

"Employers need to take a look at the data on wellness, as it is both powerful and empowering and is one of the most effective ways of positively impacting the behaviours of employees and how they feel," Rhodes said.

Author

Mike Taylor

Mike Taylor is Managing Editor of the financial services publications Money Management and Super Review. He has been a journalist for the past 41 years with a career spanning coverage of financial services, federal and state politics and industrial relations.